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ELCPartially AllowedNot stated in the judgment· [2024] KEELC 6895 (KLR)

Cooperative Bank of Kenya Ltd v Gituma (Environment and Land Appeal E021 of 2024) [2024] KEELC 6895 (KLR)

Environment and Land Court
16 October 2024
4,293 words in judgment
View original judgmentRead on Kenya Law Watch case
AI-assisted case brief
·~17 min to read original · ~4 min brief

The bottom line

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A Kenyan land court refused to pause its orders, found a party in contempt, and ordered an auctioneer to refund illegally collected fees.

What this practically means

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Executive summary

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This Environment and Land Court decision at Meru, delivered by C K Nzili J on 16 October 2024, resolves three applications arising from the court's ruling of 19 June 2024, in which the court had found an execution of decree illegal and irregular and ordered the respondent to surrender the original title deed and decretal sum to the Deputy Registrar within three days. First, the respondent's application dated 22 June 2024 sought stay, review, variation and setting aside of those orders pending an intended appeal. The court dismissed the review limb because the respondent had already filed a notice of appeal, electing the appellate forum; a party cannot litigate through both review and appeal. The stay limb failed for lack of demonstrated substantial loss, unexplained inordinate delay, absence of security, and the applicant's own sworn admission that the title had been released and the illegal charge discharged. Second, the auctioneer, M/s Stephen Nyamu t/a Lifeline Auctioneers, was joined as an interested party for purposes of the contempt application only, his stake in the execution being undisputed. Third, on contempt, the court applied the Mutitika standard - higher than balance of probabilities - and the Mweru parameters of proof of the order's terms, knowledge and non-compliance. Contempt was proved: the orders were served, never stayed or set aside, and the respondent made no genuine attempt to comply, giving contradictory accounts and producing unstamped receipts. The respondent was put on his mitigation before sentencing. The court further found the warrant of execution and sale a nullity ab initio because the decree was executed before taxation of costs and without leave, and ordered the auctioneer to refund the fees within three days or face detention in contempt.

Key legal issues

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01

Entitlement to stay of execution of orders pending appeal

Holding

Stay refused; no substantial loss, delay unexplained, and no security offered

Reasoning

The court applied Order 42 Rules 6 & 7 criteria: substantial loss, undue delay and security. The orders to be stayed required compliance within three days and the application was filed after the deadline had lapsed with no explanation. The applicant himself had sworn that the land registrar had released his title and lifted restrictions, rendering the appeal academic.

p. 3
02

Availability of review where an appeal has been preferred

Holding

Review incompetent once a notice of appeal was filed; the application was an abuse of process

Reasoning

Order 45 and Section 80 permit review only where no appeal has been preferred. The respondent filed a notice of appeal on 21.6.2024 and thus elected the appellate forum. The doctrine that a party cannot approbate and reprobate, supported by Orero vs Seko and Kisya Investment, barred the concurrent review application.

p. 3
03

Joinder of the auctioneer as interested party

Holding

Auctioneer joined for purposes of the contempt application only

Reasoning

An interested party is one whose participation is necessary for effectual determination of the issues. The auctioneer effected the impugned execution and admitted the instructions and proclamation in a replying affidavit, so has a disclosed stake in the contempt application and no prejudice would result from joinder.

p. 4
04

Contempt of the orders of 19.6.2024

Holding

Contempt proved to the required standard; respondent to be sentenced after mitigation

Reasoning

The orders were unambiguous, duly served, and not stayed or set aside. The Deputy Registrar confirmed non-compliance. The respondent gave contradictory accounts on oath, produced receipts without revenue stamps, and made no genuine attempt to comply or account for the decretal sum. Wilfulness and bad faith were inferred.

p. 7
05

Legality of the execution and auctioneer's fees

Holding

The warrant of execution and sale was a nullity ab initio; auctioneer to refund the fees within three days

Reasoning

Execution proceeded before taxation of party-and-party costs without leave under Section 94 of the Civil Procedure Act, contrary to an existing consent order, and despite warnings. The auctioneer's bill was not taxed before payment on 9.4.2024, so the fees were irregularly obtained and the execution irregular and unlawful.

p. 7

Legal principles established

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  • A party who has exercised the right of appeal cannot simultaneously invoke the court's review jurisdiction; he must choose one forum
  • A decree cannot be executed before party-and-party costs are taxed without leave of court under Section 94 of the Civil Procedure Act
  • Contempt must be proved to a standard higher than a balance of probabilities, and requires proof of the terms of the order, knowledge, and failure to comply from which wilfulness is inferred
  • Court orders must be obeyed until discharged; disobedience constitutes contempt punishable by committal or attachment

Court orders

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  1. 1.Application for review, variation and setting aside of the orders dated 19.6.2024 dismissed as incompetent, without merit and an abuse of court process
  2. 2.Prayer for stay of the orders dated 19.6.2024 refused
  3. 3.M/s Stephen Nyamu t/a Lifeline Auctioneers joined as interested party for purposes only of the contempt application
  4. 4.Application for contempt against the respondent found proved; the citee put on his mitigation before sentencing
  5. 5.The auctioneer ordered to refund the auctioneer's fees irregularly obtained to the appellant within three days, failing which the auctioneer shall be detained for contempt of court
  6. 6.The appellant at liberty to follow the law as to the liability of whoever else, alongside the auctioneer, perpetuated the illegality

Authorities

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Legislation

  • Civil Procedure RulesOrder 45
  • Civil Procedure RulesOrder 42 Rules 6 & 7
  • Civil Procedure ActSection 80
  • Civil Procedure ActSection 94

Cases cited (26)

  • Githau vs Kagiri & another (2024) KLR (30th May 2024) (Ruling)
  • James Wangalwa & another vs Agnes Naliaka Cheseto (2012) eKLR
  • Arun C Sharma vs Ashana Raikundalia t/a Raikundalia & Co. Advocates & others (2014) eKLR
  • Lydia Kaguna Japheth & others vs Mbesa Investment Ltd & 2 others (2022) eKLR
  • Ajit Kumar Rath vs State of Orisa & 9 others Supreme Court Cases 596
  • Nyamogo & Nyamogo vs Kogo (2001) E. A 170
  • Ndithya vs Total (K) Ltd (2022) KEHC 10080 (KLR) (14th July 2022)
  • Gerald Kithu Muchanje vs Catherine Muthoni Ngare & another (2020) eKLR
  • Consolidated Marine vs Nampijja & another NRB Civil Appeal No. 93 of (1989)
  • Mukuma vs Abuoga (1988) KLR 645
  • Orero vs Seko (1984) KR 238
  • Kisya Investment Ltd vs. Attorney General & another Civil Appeal No. 31 of 1995
  • Yano Haryanto vs E.D. & F Man Sugar Ltd Civil Appeal No. 122 of 1992
  • Republic vs Institution of Certified Public Accountants of Kenya (exparte) Mundia Njeru Gateria (2010) eKLR
  • Behan & Okero Advocates vs National Bank of Kenya (2007) eKLR
  • Westmost Holdings SD N B.HD vs Central Bank of Kenya (Civil Appl. 10 (E017) of 2021 (2021) KESC 3 (KLR) (8th October 2021) (Ruling)
  • Francis Muruateru & others vs. Republic & others (2021) KESC 31
  • Republic vs Ahmed Abolfathi Mohammed & another (2018) eKLR
  • B. vs AG (2004) 1 KLR 431
  • Mutitika vs Bahariri Farm Ltd (1985) KLR 229
  • Republic vs County Chief Officer Finance and Economic Planning, NRB City County exparte David Mugo Mwango (2018) eKLR
  • Refrigerator and Kitchen Utensils Ltd vs Gulabchand Popatlal Shah & others NRB Civil Application No. 39 of 1990
  • Wildlife Lodges Ltd vs County Council of Narok and another (2005) 2 E. A 344
  • Central Bank of Kenya & Another vs Ratital Anto Mobile Ltd & others Civil Application No. NRB 246 of 2006
  • Samuel M.N Mweru and others vs National Lands Commission & others (2020) eKLR
  • Fred Matiangi, the C.S Ministry of Interior & Coordination of National Government vs Miguna Miguna & others (2018) eKLR
Jurisdiction invoked
Original jurisdiction over stay, review and contempt applications arising from the court's own ruling dated 19.6.2024; Civil Procedure Act and Civil Procedure Rules (Orders 42 and 45)

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Cooperative Bank of Kenya Ltd v Gituma (Environment and Land Appeal E021 of 2024) [2024] KEELC 6895 (KLR)", Case Analysis (2024). Not stated in the judgment. Source: https://new.kenyalaw.org/akn/ke/judgment/keelc/2024/6895/eng@2024-10-16

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.